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--- public_pages:new_sellers:ecommerce_business_models_explained [2021/01/17 12:39]
Jason Thistlethwaite created
+++ public_pages:new_sellers:ecommerce_business_models_explained [2021/09/17 07:27] (current)
Jason Thistlethwaite
@@ Line 3: / Line 3: @@
 This is far from an exhaustive or comprehensive list, but this page illustrates some of the most common ecommerce business models and how they work.
-{{:public_pages:new_sellers:ecommerce_business_models_-_dropshipping.jpeg?2640x932}}
+===== Dropshipping Business Model =====
+Basic idea: the seller is listing inventory for sale they don't actually own. They buy the inventory once a customer pays, and then ship it to the customer.
+{{:public_pages:new_sellers:ecommerce_business_models_-_dropshipping.jpeg?2640x932|ecommerce_business_models_-_dropshipping.jpeg}}
+===== Arbitrage (aka OA or RA) =====
+Basic idea: Seller buys inventory at a discount from a retailer or online store, and then sells it at a higher price somewhere else.
+Many 3PLs charge extra or refuse to handle arbitrage. This [[:public_pages:new_sellers:challenges_with_online_arbitrage|article explains why]].
+{{:public_pages:new_sellers:ecommerce_business_models_-_arbitrage.jpeg?2379x913|ecommerce_business_models_-_arbitrage.jpeg}}
+===== Wholesale =====
+Basic idea: Seller negotiates a deal with a wholesaler, distributor, or manufactuer to purchase large quanitites of products in bulk at a discount. The seller then sells them online.
+[[:public_pages:new_sellers:advantages_of_wholesale_vs_private_label|Wholesale can have certain advantages]] over private label, especially getting started.
+{{:public_pages:new_sellers:ecommerce_business_models_-_wholesale.jpeg?2959x913|ecommerce_business_models_-_wholesale.jpeg}}
+===== Private Label =====
+Basic idea: Seller invents their own product or innovates on someone else's. The seller then has it produced, markets it, and sells it online.
+{{:public_pages:new_sellers:ecommerce_business_models_-_private_label.jpeg?2397x819|ecommerce_business_models_-_private_label.jpeg}}

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